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US: Tenneco Q3 swings back to profit

By just-auto.com editorial team | 28 October 2010

Tenneco Inc has benefited from the recovery in global automotive market and reported that its third quarter has swung back into profit.

The company said that third quarter net income reached US$10m, up from a net loss of $8m, in the same period last year.

EBIT (earnings before interest, taxes and noncontrolling interests) was $67m, up 90% from a year ago.

"We delivered another strong performance this quarter. Our results reflect our ability to take advantage of higher OE production volumes, which together with an increase in global aftermarket sales drove strong revenue growth and higher earnings," said Gregg Sherrill, chairman and CEO, Tenneco. "Our results also show our commitment to ongoing actions that drive profitability improvement including managing costs and continuing to improve operational efficiency."

Revenue in the third quarter rose to $1.542bn, a 23% increase from $1.254 billion a year ago. 

Looking ahead the company said that whilst the industry is recovering, the speed of the recovery varies by region.

"Although the pace of the industry recovery continues to vary by region, Tenneco is well-positioned globally. We are benefiting from the balance across our operations in terms of markets, geography, customers, products and platform mix," said Sherrill. "We are staying focused and aligned on our three-pillar strategy - technology-driven growth, operational excellence and balance sheet strength. Strong execution on these strategies continues to drive our performance as we launch new business and capture additional growth opportunities."

Full details of Tenneco's results can be found here.